• US economy grew at an annual rate of 4.4% in Q3, the fastest pace in two years.
• Strong consumer spending contributed significantly, growing at a rate of 3.5%.
• The labor market showed weakness, with only 28,000 jobs added monthly since March.
• Concerns persist over a "K-shaped economy," where wealthier households benefit more.
• Despite growth, many Americans remain unhappy with high living costs.

The United States economy saw an impressive growth rate of 4.4% in the third quarter of 2026, marking the fastest pace in two years. This increase was driven primarily by robust consumer spending, which is crucial as it accounts for approximately 70% of the country’s GDP. The prior quarter reported a growth rate of 3.8%, according to data from the Commerce Department, as cited in Indiatimes, Reuters, and Los Angeles Times.

Notably, consumer spending increased at an annual rate of 3.5%, with notable growth in services such as healthcare, which rose by 3.6%. This strong consumer activity coupled with a surge in exports and a reduction in imports significantly lifted GDP figures. This rebound comes despite economic policies under President Donald Trump that have led to concerns regarding inflation and living costs, as highlighted by economic analysts from Indiatimes and Los Angeles Times.

Despite this economic growth, the job market has shown significant weakness. With only 28,000 jobs added monthly since March, this indicates a stark contrast to the previously robust job growth seen during the post-pandemic hiring surge. The unemployment rate remains low at 4.4%, suggesting a "no-hire, no-fire" environment, where companies are hesitant to expand payrolls or make layoffs. This trend is causing discomfort among many Americans, particularly those from lower-income groups who are experiencing stagnant wages amidst rising prices, according to Reuters and Los Angeles Times.

Economists report the presence of a "K-shaped economy," where upper-income households benefit from stock market gains, while lower-income groups face increasing financial pressures. This disparity raises questions about whether the broader middle-class will eventually share in the economic recovery, reflecting a worrying trend noted by multiple sources including Indiatimes and Los Angeles Times.